Aseana in new Vietnam move

07/07/2008 Robert Tyerman

Asian developer Aseana Properties has taken a £9 million strategic stake in Vietnam’s Nam Long Investment Corporation.

Chaired by Dato Mohammed Azlan bin Hashim, head of Malaysia’s Proton Motor group, fully listed Aseana has also reached an exclusive agreement to co-develop four projects in Ho Chi Minh City (formerly Saigon) with Nam Long, a private group and leading player in that city’s property market. Dato Mohammed proclaims: ‘This investment strengthens and anchors our presence in Vietnam and signifies our commitment to this exciting market.’

Aseana has also secured an option to develop future ‘high-end’ projects with Nam Long, which has completed several projects in Ho Chi Minh City already and has a 500 hectare land bank there and in neighbouring provinces. Nam Long’s chairman Nguyen Xuan Quang says, ‘Vietnam is going through a period of sustained growth that will require more quality homes, offices and retail centres,’ and argues, ‘We have a strong pipeline of projects.’

Shares in Aseana, which came to the LSE last year with a $162 million (£82.2 million) fundraising at $1 (51p), have now fallen to 63 cents (32p), valuing the company at £79 million.

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